In low-light conditions, the VPC-FH1 outperformed every camcorder except one in our six-camcorder test group. Even so, jurors rated low-light image quality as only Fair. Overall, the Xacti VPC-FH1 earned a combined video-quality score of Good, with only the Canon Vixia HF S10 and the Panasonic HDC-TM300 faring better in our tests.

You can also take still photos of good quality with this camcorder. In PC World Test Center jury evaluations, the VPC-FH1 earned high marks for sharpness, lack of distortion, and overall image quality. Still-photo quality earned an overall score of Good--about what you'd get with a decent yet cheap point-and-shoot camera.

And not only is the VPC-FH1 cost-efficient; it proved to be fairly fuel-efficient, as well. The camcorder lasted just over 2 hours on a single charge of its battery, outpacing all the more-expensive camcorders in our roundup. Its 122-minute battery life earned it a score of Very Good.

So what do you give up with the VPC-FH1? The 3-inch LCD screen looks less sharp than those on some expensive cameras, and the digital-only image stabilizer isn't always effective. The camera lacks a microphone jack, an accessory shoe, and an option for recording at 24 progressive frames per second. I also didn't find the menus to be as intuitive as I'd have liked, and the automated and manual recording modes are not as robust as those on more-expensive cameras.

But if you can live with these shortcomings, and if your editing software works well with the camera's MP4 files, then you can save a lot of money with the VPC-FH1. It's a lot of camcorder for the price.